By Sola Adebawo
“It’s incredible how well-intentioned programmes can become corrupted by human factors — indeed. This case is one of many, and it proves once again: building a nation is not only about engineering systems; it is about engineering character.”
The recent suspension of the Dangote Petroleum Refinery’s discounted fuel supply scheme — following revelations of abuse by affiliate marketers — is a sobering reminder of the complexities that plague governance and development efforts in Nigeria. Even with the best of intentions, noble programmes often become casualties of entrenched human tendencies: greed, opportunism, and a systemic breakdown of accountability.
At its core, the discounted pricing initiative was crafted to serve the public interest. It sought to stabilize prices, expand access to cleaner petroleum products, and offer Dangote’s strategic partners a competitive but fair profit margin. This move, in a country constantly struggling with fuel price volatility and supply bottlenecks, was both commendable and timely. However, as we now see, good policy is never enough — especially when it collides with weak enforcement, porous systems, and perverse incentives.
The Tragedy of Misaligned Interests
The scheme’s undoing lies in a familiar Nigerian story: the exploitation of privilege for personal gain. Registered marketers, trusted as strategic partners, reportedly sold their loading tickets or diverted products to unregistered dealers — effectively arbitraging the price difference for fast profits. In doing so, they undermined the very market stabilization the scheme was meant to ensure.
This practice not only defrauds the Dangote refinery but also distorts the downstream petroleum market, as non-beneficiaries gain access to subsidized products and resell them at inflated prices. It’s the worst of both worlds — loss of corporate revenue and loss of consumer trust. Yet, it also mirrors deeper dysfunctions in public sector governance, where policies are routinely sabotaged by insiders and trusted implementers.
Governance in a Distrustful Environment
Governing Nigeria — or even managing its economic lifelines like fuel distribution — is not merely a logistical task; it’s a deeply human one. It requires navigating a terrain where institutional trust is low, informal networks often overpower formal ones, and even well-structured schemes can be hijacked by opportunistic actors. The Dangote case shows that even private-sector-led initiatives are not immune from the systemic sabotage often associated with government programmes.
The implications are profound. If a multibillion-dollar private refinery with high-level oversight and control cannot shield itself from partner-level corruption, what hope do larger, publicly-funded national projects have?
Policy Design vs Human Reality
It’s not just about poor character or lack of patriotism. In truth, the rational economic actor in a weak regulatory environment will always gravitate toward profit-maximizing behavior — especially if detection is unlikely and punishment uncertain. This is why structural reform must go beyond policy articulation. It must include robust surveillance, disincentives for breach, and a culture of personal and institutional accountability.
The Way Forward: Restructure, Don’t Retreat
To its credit, the Dangote refinery has chosen to suspend and restructure rather than abandon the programme. This is wise. Nigeria cannot afford to give up on well-meaning interventions because of sabotage. Instead, it must learn, adapt, and innovate. The restructuring should include:
• Tighter traceability systems (digital ATCs, GPS-tracked trucks, and blockchain-style ledgering).
• Independent monitoring and surprise audits of partner operations.
• Sanctions and blacklisting of erring marketers to serve as deterrents.
• Public disclosure of partner conduct to build reputational accountability.
Final Thought: The Burden of Doing Good in Nigeria
Ultimately, this episode is a microcosm of what it means to govern or lead in Nigeria — a land where every good deed must be defended against a thousand unseen corruptions. It reminds us that the challenge of development isn’t always poor policy; more often, it’s poor integrity in implementation. Until institutions — public or private — find ways to align incentives with integrity, Nigeria’s progress will continue to be a frustrating dance between hope and sabotage.
